TNG files for bankruptcy – 05/22/2021 – Market

The chain of clothing stores TNG filed on Friday (21) a request for judicial recovery after cash difficulties aggravated by the closing of physical stores during the pandemic, according to Tito Bessa Jr., president of the company. The debt is approximately R $ 250 million.

If the court approves the request, the company has 60 days to present a plan.

The brand’s points of sale closed for 150 days in 2020 and for 50 days this year, due to the restriction measures to avoid contagion by Covid-19.

“We had no choice but to seek legal protection in order to reestablish our cash flow so that we can operate normally and preserve jobs, preventing enforcement actions and other constraints from making our ability to operate unviable,” said Tito Bessa Jr ., president of the company, in a statement.

In the national market 37 years ago, the company had intensified its online sales channel (which represents less than 10% of sales), but the low demand, costs and the rise in the dollar, which impacted the operation, were not enough to balance the finances. The recovery plan will be presented in up to two months.

AT leaf, the businessman stated that the pressure from banks and shopping malls – where about 90% of their stores are located – was very heavy and that there was no other way out to seek cash rebuilding.

“I want to reorganize myself for the next step, which could be a merger, I can even go to the stock exchange later. But I need to reorganize and I need my creditors to understand that,” he said. The company has about 600 employees.

In a statement, the businessman also pointed out that the recovery is a great opportunity to return to growth, a “necessary and essential” stage.

“We have a democratic brand with national presence and prestige and we believe that such a measure will bring the balance that is necessary to take advantage of the recovery of the economy.”

Bessa Jr. is also CEO of Ablos (Brazilian Association of Satellite Shopkeepers), which pleaded a series of demands from shopping malls during the pandemic, such as rent adjustment.


The article from the source


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